6132 - INTERNATIONAL MONETARY ECONOMICS

This topics course deals with theories, data and information, required to understand the complex situation of global monetary and financial markets and policies. Classes also emphasize the importance of historical perspectives and institutional developments to understand interest and exchange rates, monetary policies and financial regulation. Students are guided in following the flow of news, proposals and discussions on the international financial crisis, with a more accurate use of words, a better framework for reasoning and some basic knowledge of the most relevant facts and data sources.

The course is centred on the global financial crisis, in a long run monetary perspective. A synthetic history of the international monetary and financial system is followed by a special focus on the Great Inflation of the 70s’. The reaction to the Great Inflation, also including the introduction of the euro in the Eu, dictated monetary policy rules that prevailed for twenty years leading to the Great Moderation. The incompleteness and the weaknesses of these rules were among the causes of the Great Crisis that started in 2007 and that shows the need for new rules and a better global cooperation in monetary and financial policies. A description of the stages of the crisis and of its main consequences for the financial sector and for the real economies, is followed by a discussion of its causes and of the policy responses, including reforms of financial regulations and institutions. A case-study approach will be used to deal with issues related to the evolution of the euro area, of the role of the dollar and of the emerging global role of Chinese money and finance.

Written exam

Materials for required and optional reading are as updated as possible and will be indicated during the first session.

A very basic macro course is the only prerequisite.